EXR soars, gaining $2.39 (2.11%) within a single day
Extra Space Storage Inc (EXR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, EXR finished the week 4.74% higher at 115.43 after surging $2.39 (2.11%) today, notably outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. This is the biggest single-day gain in over six months. Today's close at 115.43 marks the highest recorded closing price since October 24, 2019. The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (EXR as at Feb 14, 2020):
Friday's trading range has been $2.28 (2.01%), that's far above the last trading month's daily average range of $1.48. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for EXR.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 113.17 earlier during the day, Extra Space bounced off the key technical support level at 113.29 (S1). The failure to close below the support might increase that levels importance as support going forward. When prices bounced off a significant support level the last time on Wednesday, EXR gained 0.78% on the following trading day. Prices are trading close to the key technical resistance level at 116.52 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 111.03.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "7 Consecutive Higher Closes" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Extra Space. Out of 16 times, EXR closed lower 87.50% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 56.25% with an average market move of -0.33%.